AUSTRALIA and China are unlikely to start real negotiations for a free trade agreement this year, and it could take a long time to end up with a result that tackled "behind the border" issues, a senior trade official has warned.
Australian companies have raised serious concerns they may not be able to surmount Chinese regulations and restrictions ahead of the first in-depth free trade negotiations between the two countries.
China's sustained growth will depend on how well it manages its political and trade relationships. Acquiring concessions and investing directly in natural-resource-based projects in Indonesia makes a great deal of sense for China.
The Federal Government wants to establish a powerful free trade bloc with Asia, giving Australia unprecedented economic access to almost half the world's population.
Countries in East Asia that are parties to, or in the process of negotiating, one or more free trade arrangements not only with countries within the region but outside the region as well, are looming to take the “hub and spoke” characteristic -- for example, ASEAN-China (2010), ASEAN-Japan (2012), and ASEAN-Korea, and Japan-Singapore (2002) and Japan-Philippines. Whether ASEAN would be the hub or spoke remains to be seen.